Trade, Remittances, Institutions, and Economic Growth
AbstractThis paper empirically investigates the role of trade, remittances, and institutions in economic development in a large sample of developing countries using recently developed instruments for all these variables. Both cross-country (over 30 years) and dynamic panel data (over 5-year periods) regressions of growth rates on instrumented trade, remittances, and institutions provide evidence of a significant impact of trade, institutions, and remittances on growth. While institutions foster growth, remittances hamper it. The effect of trade on growth is positive in cross-sectional regressions but ambiguous in dynamic panel data regressions. These results are indicative of a more important role for trade in explaining growth in the very long run compared with over shorter horizons.
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Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal International Economic Journal.
Volume (Year): 23 (2009)
Issue (Month): 3 ()
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- Thanh Le, . "Trade, Remittances, Institutions, and Economic Growth," MRG Discussion Paper Series 2308, School of Economics, University of Queensland, Australia.
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